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EUR/USD bouncing from 1.3540

FXstreet.com (Edinburgh) -After hitting fresh multi-month highs around 1.3590, sellers turned up and dragged the EUR/USD to the vicinity of 1.3540 on Tuesday.

EUR/USD up on weaker USD

The offered tone around the greenback continues to prevail in the first half of the week, pushing the pair higher despite the softer tone in September’s manufacturing PMI prints from core euro zone members. In the opinion of AceTrader Team, “Today, selling euro on intra-day recovery in anticipation of further weakness is favoured and only above 1.3524 would signal that the pullback from 1.3565 has possibly ended and above 1.3565/69 resistance would extend the uptrend to 1.3610”.

EUR/USD critical levels

As of writing the pair is up 0.18% at 1.3551 and a break above 1.3598 (high Feb.5). On the flip side, a breakdown of 1.3467 (low Sep.30) would expose 1.3462 (low Sep.25) and finally 1.3459 (23.6% of 1.3104-1.3569).

Not a Letta confidence in Italy

Silvio Berlusconi’s attempts to kick the legs out from under the Italian government seem to have worked, with Prime Minister Enrico Letta calling for a vote of confidence on Wednesday.
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EUR/GBP under heavy pressure after dismal EZ data

The EUR/GBP is heading lower today spiking down at 0.8330 area (lowest level since the 17th January of 2013) due to dismal EZ data.
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